How to continue my rebuild (dropping cards)

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3 posts
Credit4115
 
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Joined: Thu Jun 23, 2016 11:06 pm

How to continue my rebuild (dropping cards)

Postby Credit4115 » Mon Jul 04, 2016 10:12 am

msb,bmn
Last edited by Credit4115 on Sat Jul 09, 2016 9:31 pm, edited 1 time in total.


Tubpbs
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Re: How to continue my rebuild (dropping cards)

Postby Tubpbs » Tue Jul 05, 2016 4:40 pm

Credit4115 wrote:I had only late payments
Nothing else... except high utilization
So I paid everything off..
I currently still have a small car loan (low rate) about $3700

Just paying everything off jumped my score about 100 points
Issue is I have a long term Credit One Bank card (I know)
And that is the only long term card I have

In the two months ago I got approved for
American Express blue cash everyday
Discover It
Chase Freedom unlimited
Bank of America Travel Awards Visa
Capital One Quicksilver

Keep in mind my credit score was 612 so I am not sure why they approved all these..
Now my score is 630 and they are not all reporting yet
(I went for 513 to 630 in two months)

So I have been using the American Express and Chase freedom card... And I have been making multiple payments
(charge $500.. Pay $500.. Charge $500 pay $500) So I ended up spending past the limit on these cards while keeping near zero balances
I can do these because I do some work for a company and if I WANT I can charge on my card and they pay me back.. So I can toss money on the card to get points/cash back/use.

I can not use my discover card for this because they decrease my credit line temporarily the amount of the multiple payments

Now I have enough cards ...
I want to ditch the Credit One Bank card of course... Temporary hits to my credit are okay
I just need it back by November


I'm not 100% sure if I'm answering your intended question, but it's difficult for us to know what the effect of closing the Credit One account it. The factors to be considered are you available credit / utilization and your average age of accounts.

The first one will have an immediate effect so just keep that in mind. Your average age of accounts won't change for 10 years basically. When you close an account, FICO still factors it into your AAoA for ten years as long as it was in good standing.

I'm not sure if you were looking for more info or not, but feel free to follow up.

Congrats on the forward progress. Slow and steady is the way to go with credit.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

takeshi
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Re: How to continue my rebuild (dropping cards)

Postby takeshi » Thu Jul 07, 2016 9:07 am

Initial impact is due to whatever the impact would be to your revolving utilization. You can calculate your revolving utilization before and after to see. The closed account will typically continue to show up on reports and factor into AAoA for 10 years.

If you really want to make improvements then work on getting the lates and other derogs removed, if possible as those will be the major factors dragging your scores down. You can drop revolving utilization whenever you're applying, requesting CLI's, etc since it is based on the balances and limits currently indicated in your reports. Just generally aim to keep it at 30% or less.

Credit4115 wrote:So I have been using the American Express and Chase freedom card... And I have been making multiple payments
(charge $500.. Pay $500.. Charge $500 pay $500) So I ended up spending past the limit on these cards while keeping near zero balances

All that matters for revolving utilization is the balance of the account on the report date. That's what gets reported to the CRA's and used for scoring and what creditors see. AmEx & Chase report on statement date so the statement balance is what is reported.



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